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Last Updated on: 19 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

NIIT Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 19, 2024, 6:43 pm

Market Cap 2,546 Cr.
Current Price 188
High / Low208/90.6
Stock P/E54.7
Book Value 77.4
Dividend Yield0.66 %
ROCE4.64 %
ROE3.80 %
Face Value 2.00
PEG Ratio-0.95

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for NIIT Ltd

Competitors of NIIT Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
G-Tech Info Training Ltd 0.64 Cr. 1.841.84/1.3332.0 0.370.00 %19.0 %9.52 % 1.00
Aptech Ltd 951 Cr. 164298/16341.4 41.92.74 %18.6 %13.1 % 10.0
NIIT Ltd 2,546 Cr. 188208/90.654.7 77.40.66 %4.64 %3.80 % 2.00
MPS Ltd 3,619 Cr. 2,1082,470/1,31532.4 2043.56 %39.0 %29.2 % 10.0
Compucom Software Ltd 219 Cr. 27.745.0/22.4147 17.61.45 %6.00 %3.77 % 2.00
Industry Average1,833.75 Cr497.9161.5068.251.68%17.45%11.88%5.00

All Competitor Stocks of NIIT Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2532793013163858194949360638185
Expenses2122122342423038196928671708078
Operating Profit42676773810-227-11-817
OPM %16%24%22%23%21%0%-2%3%7%-18%-13%2%8%
Other Income24714148621101112151516
Interest1110000000000
Depreciation131614141464444445
Profit before tax515766737557-5814-331118
Tax %19%18%22%28%24%-21%16%19%-16%-202%22%6%18%
Net Profit414752525768-5716-921115
EPS in Rs2.933.273.873.934.115.03-0.480.351.06-0.700.160.791.06

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,2459539439531,002845850865889960251341297
Expenses1,098909890927929785780796835799248345307
Operating Profit14745532673607170541613-3-10
OPM %12%5%6%3%7%7%8%8%6%17%1%-1%-3%
Other Income171-817-68774751001,408852363453
Interest2818191724282223209111
Depreciation878678107494640336059151617
Profit before tax203-68-26-166761841141,3831772211325
Tax %69%64%-35%-1%50%30%24%24%4%19%-4%36%
Net Profit1102719-140704264871,327144230819
EPS in Rs6.671.591.08-8.394.062.473.755.1793.8110.0516.890.241.31
Dividend Payout %24%101%149%0%0%0%0%97%11%25%18%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-75.45%-29.63%-836.84%150.00%-40.00%52.38%35.94%1425.29%-89.15%59.72%-96.52%
Change in YoY Net Profit Growth (%)0.00%45.82%-807.21%986.84%-190.00%92.38%-16.44%1389.35%-1514.44%148.87%-156.24%

NIIT Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:-11%
5 Years:-19%
3 Years:-32%
TTM:12%
Compounded Profit Growth
10 Years:13%
5 Years:-15%
3 Years:-29%
TTM:155%
Stock Price CAGR
10 Years:31%
5 Years:50%
3 Years:24%
1 Year:60%
Return on Equity
10 Years:6%
5 Years:7%
3 Years:6%
Last Year:4%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:58 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital33333333333333282827272727
Reserves6356416977726506908001,4921,6121,4889691,0071,021
Borrowings15312815519517717820716658251388
Other Liabilities388319284337509481425352452566131122134
Total Liabilities1,2081,1211,1681,3371,3701,3821,4652,0392,1512,1071,1401,1631,190
Fixed Assets220185110107194219228357310371245260283
CWIP121842152853205616162
Investments2362905265825866042844859722572586620
Other Assets7396285276465755311,1828189781,008306302285
Total Assets1,2081,1211,1681,3371,3701,3821,4652,0392,1512,1071,1401,1631,190

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +5862317011188465123628829
Cash from Investing Activity +-52-25-19-67-48-63-54746-50229-2263
Cash from Financing Activity +-0-76-616-43-211-809-98-386-34-23
Net Cash Flow5-40519204-7-1288131-258-10

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow147.00-108.00-75.00-129.00-122.00-117.00-107.00-137.00-112.00103.00-22.00-16.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days14298728873717056552753346
Inventory Days293131
Days Payable554816980
Cash Conversion Cycle-384-686-8778873717056552753346
Working Capital Days47351128-30-57-2924-14-894218
ROCE %-4%-2%-8%3%9%12%14%3%8%0%1%5%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters35.08%35.03%34.98%34.88%34.86%34.85%34.84%34.81%34.73%34.71%34.66%37.25%
FIIs22.81%21.48%21.70%21.21%20.49%20.70%21.09%18.77%18.44%18.17%17.43%13.58%
DIIs11.66%12.14%11.72%11.88%12.24%13.13%12.31%12.72%12.69%12.58%12.56%11.51%
Government0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Public30.43%31.34%31.59%32.02%32.39%31.31%31.74%33.68%34.10%34.50%35.34%37.64%
No. of Shareholders98,3071,07,3051,06,6711,07,6191,05,35097,2851,02,7891,09,6111,09,0961,13,1551,11,1911,13,590

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Small Cap Fund11,111,0660.31126.67462,6902024-11-162301.41%
ICICI Prudential Technology Fund462,6900.055.27462,6902024-11-160%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)2.850.2416.8310.0982.87
Diluted EPS (Rs.)2.810.2316.439.9682.40
Cash EPS (Rs.)4.281.8421.4814.2398.01
Book Value[Excl.RevalReserv]/Share (Rs.)76.9274.32113.49115.47107.66
Book Value[Incl.RevalReserv]/Share (Rs.)76.9274.32113.49115.47107.66
Revenue From Operations / Share (Rs.)22.4725.36102.9066.7062.83
PBDIT / Share (Rs.)4.882.5726.0118.2613.99
PBIT / Share (Rs.)3.521.3421.7014.129.77
PBT / Share (Rs.)3.401.1821.3313.6499.87
Net Profit / Share (Rs.)2.920.6217.1710.0993.78
NP After MI And SOA / Share (Rs.)2.840.2316.9010.0593.80
PBDIT Margin (%)21.7310.1125.2727.3822.27
PBIT Margin (%)15.685.2921.0921.1715.54
PBT Margin (%)15.124.6620.7220.44158.94
Net Profit Margin (%)13.012.4416.6815.13149.25
NP After MI And SOA Margin (%)12.640.9316.4215.06149.28
Return on Networth / Equity (%)3.710.3114.928.7187.28
Return on Capital Employeed (%)4.531.7918.7312.018.58
Return On Assets (%)3.290.2710.726.6465.09
Long Term Debt / Equity (X)0.000.000.000.000.01
Total Debt / Equity (X)0.000.000.010.000.03
Asset Turnover Ratio (%)0.260.210.240.190.24
Current Ratio (X)7.166.202.943.703.66
Quick Ratio (X)7.156.202.943.703.65
Dividend Payout Ratio (NP) (%)17.570.0032.4619.8017.89
Dividend Payout Ratio (CP) (%)11.890.0025.8714.0217.12
Earning Retention Ratio (%)82.430.0067.5480.2082.11
Cash Earning Retention Ratio (%)88.110.0074.1385.9882.88
Interest Coverage Ratio (X)46.8129.71168.2143.5111.92
Interest Coverage Ratio (Post Tax) (X)29.5311.42115.3528.024.97
Enterprise Value (Cr.)1331.274325.027904.961475.92957.78
EV / Net Operating Revenue (X)4.3912.675.741.551.08
EV / EBITDA (X)20.18125.2722.705.684.84
MarketCap / Net Operating Revenue (X)4.7012.876.042.071.31
Retention Ratios (%)82.420.0067.5380.1982.10
Price / BV (X)1.384.415.501.200.76
Price / Net Operating Revenue (X)4.7012.876.042.071.31
EarningsYield0.020.000.020.071.14

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of NIIT Ltd as of November 19, 2024 is: 161.95

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 19, 2024, NIIT Ltd is Overvalued by 13.86% compared to the current share price 188.00

Intrinsic Value of NIIT Ltd as of November 19, 2024 is: 68.93

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 19, 2024, NIIT Ltd is Overvalued by 63.34% compared to the current share price 188.00

Last 5 Year EPS CAGR: -57.44%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -1.17, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -98.33, which is a positive sign.
  3. The company has higher reserves (959.54 cr) compared to borrowings (113.15 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (626.85 cr) and profit (49.69 cr) over the years.
  1. The stock has a low average ROCE of 3.42%, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in NIIT Ltd:
    1. Net Profit Margin: 13.01%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 4.53% (Industry Average ROCE: 17.45%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 3.71% (Industry Average ROE: 11.88%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 29.53
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 7.15
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 54.7 (Industry average Stock P/E: 61.5)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

NIIT Ltd. is a Public Limited Listed company incorporated on 02/12/1981 and has its registered office in the State of Haryana, India. Company’s Corporate Identification Number(CIN) is L74899HR1981PLC107123 and registration number is 107123. Currently Company is involved in the business activities of Other education. Company’s Total Operating Revenue is Rs. 445.19 Cr. and Equity Capital is Rs. 26.77 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Training ServicesPlot No. 85, Sector 32, Institutional Area, Gurugram Haryana 122001investors@niit.com
http://www.niit.com
Management
NamePosition Held
Mr. Rajendra Singh PawarExecutive Chairman
Mr. Vijay Kumar ThadaniVice Chairman & Mng.Director
Mr. Parappil RajendranJoint Managing Director
Mr. Sapnesh Kumar LallaNon Exe.Non Ind.Director
Mr. Udai Singh PawarNon Exe.Non Ind.Director
Mr. Sanjiv ChaudharyInd. Non-Executive Director
Ms. Avani Vishal DavdaInd. Non-Executive Director
Ms. Sonu Halan BhasinInd. Non-Executive Director
Mr. Ravindra Babu GarikipatiInd. Non-Executive Director
Mr. Srikanth VelamakanniInd. Non-Executive Director

FAQ

What is the latest intrinsic value of NIIT Ltd?

The latest intrinsic value of NIIT Ltd as on 19 November 2024 is ₹161.95, which is 13.86% lower than the current market price of ₹188.00.

What is the Market Cap of NIIT Ltd?

The Market Cap of NIIT Ltd is 2,546 Cr..

What is the current Stock Price of NIIT Ltd as on 19 November 2024?

The current stock price of NIIT Ltd as on 19 November 2024 is ₹188.

What is the High / Low of NIIT Ltd stocks in FY 2024?

In FY 2024, the High / Low of NIIT Ltd stocks is 208/90.6.

What is the Stock P/E of NIIT Ltd?

The Stock P/E of NIIT Ltd is 54.7.

What is the Book Value of NIIT Ltd?

The Book Value of NIIT Ltd is 77.4.

What is the Dividend Yield of NIIT Ltd?

The Dividend Yield of NIIT Ltd is 0.66 %.

What is the ROCE of NIIT Ltd?

The ROCE of NIIT Ltd is 4.64 %.

What is the ROE of NIIT Ltd?

The ROE of NIIT Ltd is 3.80 %.

What is the Face Value of NIIT Ltd?

The Face Value of NIIT Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in NIIT Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE